Google recommits to $1bn investment in Africa’s digital economy
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…to launch its first African cloud region in South Africa
Tech giant Google has announced its determination to strengthen its penetration and impact in Africa’s digital economy through the $1 billion investment commitment made in 2021 by Sundar Pichai, the company’s CEO.
The announcement, which came at the second Google for Africa event held virtually on Wednesday, further disclosed that the company is set to establish a new Google Cloud Region in South Africa, its first on the continent.
The new Cloud Region, Google noted, will help users, developers, businesses and educational institutions across the world’s second-largest continent by size and population to move more information and tools online, improve access options for customers and, in turn, create jobs.
The South Africa cloud region will contribute more than a cumulative $2.1 billion to the country’s GDP and will support the creation of more than 40,000 jobs by 2030, according to research by AlphaBeta Economics commissioned by Google Cloud.
Niral Patel, director of Google Cloud Africa, said the company believes in growing an open and healthy ecosystem of technology solutions to support Africa’s digital transformation goals, leading to more opportunities for businesses across the continent.
“It is part of our company-wide ethos to respect the environment, which is why we operate the cleanest cloud in the industry, supporting sustainable digital transformation,” he said.
Patel also disclosed that along with the cloud region, Google is expanding its network through the Equiano subsea cable and building Dedicated Cloud Interconnect sites in Johannesburg, Cape Town, Lagos and Nairobi.
“In doing so, we are building full-scale cloud capability for Africa,” he said.
Speaking further on how Google is driving the growth of Google Cloud in Africa, Patel said Google is already working with customers across the continent by helping them solve business critical challenges, get online, and access the benefits of digital technology.
He noted that Google Cloud, in partnership with leading retailer TakeAlot, is helping about three million local customers to enjoy a hassle-free online shopping experience in South Africa.
He further explained that TakeAlot built its e-commerce platform on Google Cloud, which has enabled the business to avoid system crashes during high traffic periods like Black Friday.
On how Google Cloud has been able to enhance food productivity in Kenya, Patel said Google has maintained a working relationship with Twiga Foods, a technology-driven company in Kenya, towards addressing and improving food security in Africa. This partnership, he explained, helps them connect 1,000 farmers to 140,000 vendors, delivering 12,000 orders every day and storing two million kilograms of fresh produce.
In another development and in its determination to make Google Maps more useful across the continent, Google refreshed Street View in Kenya, South Africa, Senegal and Nigeria with nearly 300,000 kilometres of imagery. This, the company explained, helps people virtually explore and navigate neighbourhoods on Google Maps.
As part of its efforts to strengthen Africa’s internet economy projected with the potential to grow to $180 billion by 2025, Google said its $50 million Africa Investment Fund that targets equity investments in tech startups has invested in three businesses over the past nine months. The startups include SafeBoda, a transportation app in Uganda and Nigeria, Carry1st, a South African mobile gaming startup, and Lori Systems, an e- logistics company based in Kenya.
To support African entrepreneurs in growing and developing their talent, Google said it has continued to support African small businesses through the Hustle Academy and Google Business Profiles, and to help job seekers learn the skills they need through Developer Scholarships and Career Certifications.
Nitin Gajria, managing director, Google Africa, said the company is collaborating with governments, policymakers, NGOs, telcos, business leaders, creators and media to help accelerate Africa’s digital transformation.
According to Gajria, the talent and drive of the individuals in the countries and communities of Africa will power Africa’s economic growth.
Another milestone recorded by Google in Africa is the subsea cable, Equiano, now running through Togo, Nigeria, Namibia and South Africa, which is expected to deliver faster, lower-cost internet to the continent by connecting St. Helena, Togo, Nigeria, Namibia and South Africa with Europe.
A recent economic impact assessment conducted by Africa Practice and Genesis Analytics found that by 2025, the cable is set to accelerate economic growth with Nigeria’s GDP rising by $10.1 billion, South Africa’s $7 billion, and Namibia’s $260 million. During the same time, Equiano is expected to indirectly create 1.6 million jobs in Nigeria, 180,000 in South Africa and 21,000 in Namibia, driven by the expansion of the digital economy and peripheral sectors.
Recently, Google partnered with the UN to launch the Global Africa Business Initiative (GABI), a global partnership aiming to accelerate Africa’s economic growth and sustainable development. Google announced plans to open its first African product development centre in Nairobi to develop and build better products for Africans and the world.
Mahamudu Bawumia, vice president of Ghana, in his remark, said the Google for Africa event provides a quintessential platform for Africans, together with its partners, to demonstrate the importance of helpful partnerships between governments and the private sector in addressing African challenges.
“The Ghanaian government is proud of our partnership with Google through several initiatives,” Bawumia said.